It is no exaggeration to describe the current hot market in China's auto market. It is not only the most dazzling light in the global downturn in the auto market, but also deserves to be the focus of investment. Large companies landed on the beach and the small company was ambitious. For a time, the Chinese auto market was like a feast for being on the side of the main course, attracting investors from all over the world to stop.
Capacity crisis
According to a research report by Goldman Sachs, by 2006, multinational automakers will have more than 1.5 million new production capacity in the Chinese market, and will reach 2.5 million by 2010. If we add the production capacity of local cars and light commercial vehicles, by 2006, the total capacity of the Chinese car market is expected to reach 6.9 million.
Goldman Sachs’ report stated that, in contrast, even assuming that the annual automobile sales growth rate reaches 15%, the entire automobile market will hardly exceed 2.2 million units in sales in 2006.
Therefore, under the heat of a car, it is not difficult to see from a bit of cool analysis that, at today's speed, overcapacity will be a problem that the Chinese auto market will face in the near future.
Investment crisis
There is also a crisis in car investment.
The vast space of the Chinese auto market makes it hard for foreign car giants to itch. In recent days, Nissan, GM, Volkswagen, Toyota and other multinational auto giants have thrown their investment or capital increase plans in China.
On the occasion of the 50th anniversary of FAW, the chairman of Volkswagen Pichresried delivered a “big giftâ€, and Volkswagen will invest 6 billion Euros in China in the next 5 years, of which 60% will be used for the development of new models.
General Motors entered China in the late 1990s. Despite its lack of advantages in terms of time, it took advantage of its ability to become the most powerful auto company in the world and formed a fist in the Chinese market in just a few years (Shanghai GM). Two offensives (Shangqi GM Wuling, Jinbei GM) offensively involved products such as cars, SUVs, pickup trucks, and mini-vehicles. The model series was slightly more abundant than German Volkswagen.
The news that Toyota and the Guangzhou Automobile Industry have jointly invested 30 billion yen has recently set the tone for the day and the two sides have cooperated to produce Toyota Camry, the best-selling imported car in the Chinese market. Production began in 2005 and plans to produce 30,000 vehicles that year. The planned long-term production capacity is 200,000 to 300,000 vehicles.
On June 9 of this year, Dongfeng Motor Company with a registered capital of 16.7 billion yuan was formally listed in Wuhan, Hubei Province. By 2006, the total sales volume of the joint venture company will reach 550,000, of which 330,000 commercial vehicles and 220,000 passenger vehicles. Vehicle.
No matter how hot the language describes the popularity of the Chinese automobile market in the past two years can not be exaggerated, today's Chinese market has become the most favored beauty in the global market, at this time splash of cold water is undoubtedly unpopular However, we must clearly understand that in just two years, the Chinese auto market has attracted too much attention, too much attention has been injected too much expectations. But looking forward to expectations, the reality is back to reality. Nowadays, the hot-hot Chinese auto market seems to be like many industries that once operated by the whole people. The authoritative investment bank Goldman Sachs recommended in the “Global Automotive Industry Assessment†report recently published in the China article. Foreign investors interested in the Chinese auto industry should be very cautious because the return rate of the Chinese auto market may quickly fall back to the general level of the industry. According to related sources, this year, 23 provinces and cities in China have invested hundreds of billions of yuan in the automotive industry. The relevant authorities of the state pointed out in this regard that the market demand for automobiles is subject to great fluctuations. If market risks are not taken into consideration and investment is rash, it is bound to cause an excess of auto production capacity after the investment fever has passed.
Purchasing power crisis
The high profit and rapid development of automobiles are the most important reasons for attracting foreign investment in the Chinese automobile market. Yang Haimeng, the chief representative of the Chinese business of the French company Citroën Motors, said that in measuring vehicle sales, 60 million French people buy 2.5 million vehicles each year. In comparison, 1.3 billion Chinese bought only 1.2 million vehicles last year. He stressed that investors must focus on potential, not short-sightedness. "You must talk about China's next 25-30 years," he said. "But the time we have to invest is now: We are preparing for the future."
Although the future seems to be bright, it must be noted that China, a traditional agricultural country with a rural population of 900 million, still has a relatively low level of consumption. Therefore, using 1.3 billion people to infer the glory of the future of the Chinese auto industry. Although it looks beautiful, it is undoubtedly sloppy and unmanageable, because of the 1.3 billion people, the majority of the poor are still away from car consumption. The distance is relatively long, and it is more difficult for 900 million peasants to become car owners. Therefore, in the coming decades, China will only be able to appear in a limited number of regions.
Although planning today is a very correct method according to the future, we must recognize a clear tomorrow. Otherwise, a beautiful tomorrow may well become a beautiful bubble. It will be too late if the bubbles break.
Eye Grab Hook,Galvanized Hook,Eye Slip Hook
Yangzhou Jieerte Steel Cable Co., Ltd , https://www.jieertesteelcable.com